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SB3404 - 104th General Assembly
PEN CD-ACCEL BENEFIT PAYMENT
Last Action
Senate Sponsors
Sen. Robert F. Martwick, Chris Balkema, Li Arellano, Jr., Adriane Johnson, Terri Bryant and Jil TracyHouse Sponsors
(Rep. Bob Morgan - Travis Weaver)Statutes Amended In Order of Appearance
40 ILCS 5/3-144.3 new
40 ILCS 5/3-144.4 new
40 ILCS 5/4-138.15 new
40 ILCS 5/4-138.16 new
40 ILCS 5/5-218.5 new
40 ILCS 5/5-218.6 new
40 ILCS 5/6-213.5 new
40 ILCS 5/6-213.6 new
40 ILCS 5/8-244.5 new
40 ILCS 5/8-244.6 new
40 ILCS 5/9-134.6 new
40 ILCS 5/9-134.7 new
40 ILCS 5/10-104.6 new
40 ILCS 5/10-104.7 new
40 ILCS 5/11-223.5 new
40 ILCS 5/11-223.6 new
40 ILCS 5/12-133.8 new
40 ILCS 5/12-133.9 new
55 ILCS 5/3-14050 new
65 ILCS 5/10-4-13 new
30 ILCS 805/8.50 new
Synopsis As Introduced
Amends the Downstate Police, Downstate Firefighter, Chicago Police, Chicago Firefighter, Chicago Municipal, Cook County, Cook County Forest Preserve, Chicago Laborers, and Chicago Park District Articles of the Illinois Pension Code. Establishes an accelerated pension benefit payment in lieu of any pension benefit under which an eligible person may elect to receive an amount determined by the Fund to be equal to 60% of the present value of his or her pension benefits in lieu of receiving any pension benefit. Establishes an accelerated pension benefit payment for a reduction in annual retirement annuity and survivor's annuity increases, as applicable, under which a Tier 1 member may elect to receive an accelerated pension benefit payment equal to 70% of the difference of the present value of the automatic annual increases to a Tier 1 member's retirement annuity and survivor's annuity using the formula applicable to the Tier 1 member and the present value of the automatic annual increases to the Tier 1 member's retirement annuity using a specified formula and survivor's annuity using a specified formula. Amends the Counties Code and the Illinois Municipal Code. Requires municipalities and counties with more than 3,000,000 inhabitants to establish an accelerated pension benefit program to implement the accelerated pension benefit payments. Provides that the county or municipality shall remit to the pension funds a contribution, which may be a contribution of zero dollars, that shall constitute the total funding for accelerated pension benefit payments for that fiscal year. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.
Senate Floor Amendment No. 2
Adds reference to:
40 ILCS 5/17-120.5 new
40 ILCS 5/17-120.6 new
105 ILCS 5/34-89 new
Replaces everything after the enacting clause. Reinserts the provisions of the introduced bill with the following changes. Provides that the county board of a county of more than 3,000,000 inhabitants and a municipality may (instead of shall) establish an accelerated pension benefit program. Makes conforming changes. Provides that participants' elections to receive the accelerated pension benefit shall be processed and paid in the order in which the complete applications are received by the fund. Sets forth provisions concerning notifying the pension fund that the county or municipality has elected to establish an accelerated pension benefit program and remitting a contribution for the program. Provides that moneys remitted to the pension fund for the purpose of the accelerated pension benefit program must be kept in a separate account. Provides that, if any moneys remain in this account at the end of the fiscal year, the fund must remit those moneys back to the employer within one month after the end of the fiscal year, unless the employer notifies the pension fund at least one month before the end of the fiscal year that the funds shall remain in the account to be used for the subsequent fiscal year. Further amends the Illinois Pension Code. Authorizes accelerated pension benefit payments under the Chicago Teacher Article of the Code. Amends the Chicago Public Schools Article of the School Code to make conforming changes. Effective immediately.
Pension Note (Government Forecasting & Accountability)
SB 3404, as engrossed, is nearly identical to the introduced bill, with two major exceptions; the buyout plans are optional for municipalities to establish (explicated stated in the engrossed bill), and the Chicago Teachers Pension Fund (CTPF) is added as an eligible system. However, the anticipated fiscal impact would be the same, but now dependent on the number of eligible employers that elect to establish the two buyout programs. SB 3404, as engrossed, creates the two buyout programs—Total buyout and the COLA (or AAI) buyout—for the affected pension funds, mirroring the existing buyout programs currently available in the State’s “Big 3” retirement systems (SERS, SURS, and TRS). According to SERS, SURS, and TRS, the buyout programs have resulted in an estimated $2.6 billion reduction in liabilities and required approximately $2.0 billion in buyout payments, based on data previously provided from each system (ranging from June 2025 to January 2026).
SB 3404, as engrossed, is nearly identical to the introduced bill, with two major exceptions; the buyout plans are optional for municipalities to establish (explicated stated in the engrossed bill), and the Chicago Teachers Pension Fund (CTPF) is added as an eligible system. However, the anticipated fiscal impact would be the same, but now dependent on the number of eligible employers that elect to establish the two buyout programs. SB 3404, as engrossed, creates the two buyout programs—Total buyout and the COLA (or AAI) buyout—for the affected pension funds, mirroring the existing buyout programs currently available in the State’s “Big 3” retirement systems (SERS, SURS, and TRS). According to SERS, SURS, and TRS, the buyout programs have resulted in an estimated $2.6 billion reduction in liabilities and required approximately $2.0 billion in buyout payments, based on data previously provided from each system (ranging from June 2025 to January 2026).
Fiscal Note, Senate Floor Amendment No. 2 (Government Forecasting & Accountability)
SB 3404 (S-AM 2) is nearly identical to the underlying bill, with two major exceptions; the buyout plans are optional for municipalities to establish (explicated stated in SA 2), and the Chicago Teachers Pension Fund (CTPF) is added as an eligible system. However, the anticipated fiscal impact would be the same, but now dependent on the number of eligible employers that elect to establish the two buyout programs. SB 3404 (S-AM 2) creates the two buyout programs—Total buyout and the COLA (or AAI) buyout—for the affected pension funds, mirroring the existing buyout programs currently available in the State’s “Big 3” retirement systems (SERS, SURS, and TRS). According to SERS, SURS, and TRS, the buyout programs have resulted in an estimated $2.6 billion reduction in liabilities and required approximately $2.0 billion in buyout payments, based on the most recently provided data from each system (ranging from June 2025 to January 2026).
SB 3404 (S-AM 2) is nearly identical to the underlying bill, with two major exceptions; the buyout plans are optional for municipalities to establish (explicated stated in SA 2), and the Chicago Teachers Pension Fund (CTPF) is added as an eligible system. However, the anticipated fiscal impact would be the same, but now dependent on the number of eligible employers that elect to establish the two buyout programs. SB 3404 (S-AM 2) creates the two buyout programs—Total buyout and the COLA (or AAI) buyout—for the affected pension funds, mirroring the existing buyout programs currently available in the State’s “Big 3” retirement systems (SERS, SURS, and TRS). According to SERS, SURS, and TRS, the buyout programs have resulted in an estimated $2.6 billion reduction in liabilities and required approximately $2.0 billion in buyout payments, based on the most recently provided data from each system (ranging from June 2025 to January 2026).
Actions
| Date | Chamber | Action |
|---|---|---|
| 2/04/2026 | Senate | Filed with Secretary by Sen. Robert F. Martwick |
| 2/04/2026 | Senate | First Reading |
| 2/04/2026 | Senate | Referred to Assignments |
| 3/03/2026 | Senate | Assigned to Pensions |
| 3/04/2026 | Senate | Added as Co-Sponsor Sen. Chris Balkema |
| 3/10/2026 | Senate | Added as Co-Sponsor Sen. Li Arellano, Jr. |
| 3/11/2026 | Senate | Do Pass Pensions; 007-000-000 |
| 3/11/2026 | Senate | Placed on Calendar Order of 2nd Reading March 12, 2026 |
| 4/14/2026 | Senate | Second Reading |
| 4/14/2026 | Senate | Placed on Calendar Order of 3rd Reading April 15, 2026 |
| 4/17/2026 | Senate | Rule 2-10 Third Reading Deadline Established As May 8, 2026 |
| 4/24/2026 | Senate | Senate Floor Amendment No. 1 Filed with Secretary by Sen. Robert F. Martwick |
| 4/24/2026 | Senate | Senate Floor Amendment No. 1 Referred to Assignments |
| 4/28/2026 | Senate | Senate Floor Amendment No. 2 Filed with Secretary by Sen. Robert F. Martwick |
| 4/28/2026 | Senate | Senate Floor Amendment No. 2 Referred to Assignments |
| 4/28/2026 | Senate | Senate Floor Amendment No. 1 Assignments Refers to Pensions |
| 4/29/2026 | Senate | Senate Floor Amendment No. 2 Assignments Refers to Pensions |
| 5/06/2026 | Senate | Senate Floor Amendment No. 2 Recommend Do Adopt Pensions; 008-000-000 |
| 5/08/2026 | Senate | Rule 2-10 Third Reading Deadline Established As May 15, 2026 |
| 5/12/2026 | Senate | Added as Co-Sponsor Sen. Adriane Johnson |
| 5/12/2026 | Senate | Added as Co-Sponsor Sen. Terri Bryant |
| 5/13/2026 | Senate | Added as Co-Sponsor Sen. Jil Tracy |
| 5/15/2026 | Senate | Rule 2-10 Third Reading Deadline Established As May 22, 2026 |
| 5/20/2026 | Senate | Recalled to Second Reading |
| 5/20/2026 | Senate | Senate Floor Amendment No. 2 Adopted; Martwick |
| 5/20/2026 | Senate | Placed on Calendar Order of 3rd Reading |
| 5/20/2026 | Senate | Third Reading - Passed; 058-000-000 |
| 5/20/2026 | Senate | Senate Floor Amendment No. 1 Tabled Pursuant to Rule 5-4(a) |
| 5/20/2026 | House | Arrived in House |
| 5/20/2026 | House | Chief House Sponsor Rep. Bob Morgan |
| 5/20/2026 | House | First Reading |
| 5/20/2026 | House | Referred to Rules Committee |
| 5/21/2026 | House | Assigned to Appropriations-Pensions & Personnel |
| 5/21/2026 | House | Committee/Final Action Deadline Extended-9(b) May 31, 2026 |
| 5/21/2026 | House | Added Alternate Chief Co-Sponsor Rep. Travis Weaver |
| 5/21/2026 | House | Motion Filed to Suspend Rule 21 Appropriations-Pensions & Personnel; Rep. Ann M. Williams |
| 5/21/2026 | House | Motion to Suspend Rule 21 - Prevailed 072-038-000 |
| 5/26/2026 | House | Pension Note Filed |
| 5/27/2026 | House | Senate Floor Amendment No. 2 Fiscal Note Filed as Amended |